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Full-Text Articles in Law
Computer As Confidant: Digital Investment Advice And The Fiduciary Standard, Nicole G. Iannarone
Computer As Confidant: Digital Investment Advice And The Fiduciary Standard, Nicole G. Iannarone
Nicole G. Iannarone
Digital investment advisers are the fastest growing segment of financial technology (fintech) and are disrupting traditional investment advisory delivery models. The computer-led investment advisory service model may be growing particularly quickly due to a confluence of social and political factors. Politicians and regulators have increasingly focused on the standards of care applicable to investment advice providers. Fewer Americans are ready for retirement and many lack access to affordable investment advice. At the same time, comfort with digital platforms have increased, with some preferring electronic interaction over human interaction. Claiming that they can democratize retirement service by pro- viding advice meeting …
What Loss Mitigation Taught Us About Housing Finance Reform, Patricia Mccoy
What Loss Mitigation Taught Us About Housing Finance Reform, Patricia Mccoy
Patricia A. McCoy
This blog post describes the implications of the recent US loss mitigation experience for housing reform.
Functional Government In 3-D, Robert L. Glicksman, Alejandro E. Camacho
Functional Government In 3-D, Robert L. Glicksman, Alejandro E. Camacho
Robert L. Glicksman
The creation of new administrative agencies and the realignment of existing governmental authority are commonplace and high-stakes events, as illustrated by the recent creation of the Department of Homeland Security after 9/11 and of new financial regulatory agencies after the global recession of 2009. Scholars and policymakers have not devoted sufficient attention to this subject, failing to clearly identify the different dimensions along which government authority may be structured or to consider the relationships among them. Analysis of these institutional design issues typically also gives short shrift to whether authority should be allocated differently based on agency function. These failures …
Barriers To Foreclosure Prevention During The Financial Crisis
Barriers To Foreclosure Prevention During The Financial Crisis
Patricia A. McCoy
The number of modifications to distressed residential loans following the 2008 financial crisis has been disappointingly low compared to the number of foreclosures. This raises concerns about the presence of artificial barriers to loan modifications in situations where foreclosure should be avoidable. There are three pressing reasons to care about what the real barriers to foreclosure prevention are. First, foreclosures that could have been avoided inflict enormous, needless losses on borrowers, investors, and society at large. Second, overcoming artificial barriers to foreclosure prevention will result in loan modifications with higher rates of success. Finally, knowing what to fix is necessary …
Keeping Tabs On Financial Innovation: Product Identifiers In Consumer Financial Regulation
Keeping Tabs On Financial Innovation: Product Identifiers In Consumer Financial Regulation
Patricia A. McCoy
The financial crisis of 2008 gave rise to renewed discussion about whether financial innovations should undergo higher scrutiny for potential harm and, if so, what type? In this Article, the authors propose a new system for monitoring financial innovations through a system of registration, data collection and analysis using unique product identifiers. Creating product identifiers would increase monitoring abilities substantially at relatively low cost by facilitating the linkage of separate databases. The assignment of unique product identifiers would also minimize errors in the identification and classification of different financial products. These identifiers would be available to both the government and …
Securitization And Systemic Risk Amid Deregulation And Regulatory Failure
Securitization And Systemic Risk Amid Deregulation And Regulatory Failure
Patricia A. McCoy
During the recent housing boom, private-label securitization without regulation was unsustainable. Without regulation, securitization allowed mortgage industry actors to gain fees and to put off risks. The ability to pass off risk allowed lenders and securitizers to compete for market share by lowering their lending standards, which activated more borrowing. Lenders who did not join in the easing of lending standards were crowded out of the market. Meanwhile, the mortgages underlying securities became more exposed to growing default risk, but investors did not receive higher rates of return. Artificially low risk premia caused the asset price of houses to go …
The Legal Infrastructure Of Subprime And Nontraditional Mortgage Lending
The Legal Infrastructure Of Subprime And Nontraditional Mortgage Lending
Patricia A. McCoy
This paper provides a critical analysis of the legal landscape of residential mortgage lending and explains how federal law abdicated regulation of the subprime market. First, the paper presents the historical backdrop to government oversight of mortgage lending and identifies the changes to and innovations in the lending process that contributed to the recent transformation of the residential mortgage market. We then describe recent attempts at the state and federal level to re-regulate and the backlash initiated by the federal banking agencies to thwart regulation of their constituent banks through preemption, resulting in parallel universes of regulation. Next, the article …
A Behavioral Analysis Of Predatory Lending
Musings On The Seeming Inevitability Of Global Convergence In Banking Law
Musings On The Seeming Inevitability Of Global Convergence In Banking Law
Patricia A. McCoy
No abstract provided.
Technology Shifts And The Law: Year 2000 Readiness For Banks And Thrifts
Technology Shifts And The Law: Year 2000 Readiness For Banks And Thrifts
Patricia A. McCoy
No abstract provided.